[Featured Stock] Hwacheon Kikong, Partner of Japan's No.1 Robot Company Fanuc... Spotlight on Robot Material Parts Business Up↑

Hwacheon Precision is showing strong performance. It is analyzed that this is due to its role as a long-time partner of Japan's Fanuc, the world's number one robot and automation company, operating in the robot material parts business.

As of 11:24 AM on the 26th, Hwacheon Precision is trading at 30,000 KRW, up 4.53% compared to the previous day.

According to the industry, Hwacheon Precision established the joint venture 'Korea Fanuc' with Japan's Fanuc in 1978, producing parts related to NC (Numerical Control) lathes and industrial robot control systems. Hwacheon Precision is the first company in Korea to successfully localize the NC lathe, the brain of machine tools.

Hwacheon Precision is not merely a shareholder in Korea Fanuc but directly responsible for manufacturing robot castings (metal parts) necessary for robot production. Industrial robots require parts with high precision and durability, and Hwacheon Precision continuously supplies robot-related parts to Japan's Fanuc based on its long-accumulated metal processing and casting manufacturing technology.

Korea Fanuc, established with a 50:50 investment ratio between Hwacheon Precision and Japan's Fanuc, currently has Hwacheon Precision holding a 5.4% stake. Korea Fanuc is a corporation that directly manufactures Japan Fanuc products. Japan Fanuc currently has a market capitalization of approximately 42 trillion KRW.

It is known that Korea Fanuc paid about 600 billion KRW in dividends in 2023 alone. Hwacheon Precision is estimated to have earned about 32 billion KRW in dividend income. Compared to Hwacheon Precision's current market capitalization of 66 billion KRW, this represents a substantial dividend payout.

Additionally, Hwacheon Precision's separate basis total equity as of the third quarter of last year reached 309 billion KRW, highlighting a price-to-book ratio (PBR) of about 0.2 times.